Economic history of India
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Economic history of India, in the sense of the meaning of the term economic in its current sense, is at least 5,000 years old[citation needed].
Contents |
[edit] Indus Valley Civilization
The Indus Valley civilization, the first known permanent and predominantly urban settlement that flourished between 2800 BC to 1800 BC boasted of an advanced and thriving economic system. Its citizens practiced agriculture, domesticated animals, made sharp tools and weapons from copper, bronze and tin and traded with other cities. Evidence of well laid streets, layouts, drainage system and water supply in the valley's major cities, Harappa, Mohenjo-daro and Rakhigarhi reveals their knowledge of urban planning[citation needed]. They eventually over used their resources, and slowly died out. There have been few weapons found in the Indus Valley, showing that they were peaceful people, and they did not get slaughtered by the Aryans.
[edit] Ancient and Medieval Characteristics
Though ancient India had a significant urban population, much of India's population resided in villages, whose economy was largely isolated and self-sustaining[citation needed]. Agriculture was the predominant occupation of the populace and satisfied a village's food requirements besides providing raw materials for hand based industries like textile, food processing and crafts[citation needed]. Besides farmers, other classes of people were barbers, carpenters, doctors (Ayurvedic practitioners), goldsmiths, weavers, etc[citation needed].
[edit] Religion
Religion, especially Hinduism, played an influential role in shaping economic activities[citation needed]. The Indian caste system castes and sub-castes, despite its social fallbacks, functioned much like medieval European guilds, ensuring division of labour and provided for training of apprentices[citation needed]. The caste system restricted people from changing one's occupation and aspiring to an upper caste's lifestyle[citation needed]. Thus, a barber could not become a goldsmith and even a highly skilled carpenter could not aspire to the lifestyle or privileges enjoyed by a Kshatriya. Kshatriya person of a warrior class[citation needed]. This barrier to mobility on labour restricted economic prosperity to a few castes[citation needed].
Pilgrimage towns like Allahabad, Benares, Nasik, Puri, Orissa Puri, etc., mostly centred around rivers, developed into centres of trade and commerce[citation needed]. Religious functions, festivals and the practice of taking a pilgrimage resulted in a flourishing pilgrimage economy[citation needed].
[edit] Family business
In the joint family system, members of a family pooled their resources to maintain the family and invest in business ventures[citation needed]. The system ensured younger members were trained and employed in the family business and the older and disabled persons would be supported by the family[citation needed]. The system, by preventing the agricultural land from being split ensured higher yield because of the benefits of scale[citation needed]. The system curbed members from taking initiative because of the support system and family or work[citation needed].
[edit] Organizational entities
Along with the family-run business and individually owned business enterprises, ancient India possessed a number of other forms of engaging in business or collective activity, including the gana, pani, puga, vrata, sangha, nigama and sreni. Nigama, pani and sreni refer most often to economic organizations of merchants, craftspeople and artisans, and perhaps even para-military entities. In particular, the sreni was a complex organizational entity that shares many similarities with modern corporations, which were being used in India from around the 8th century BC until around the 10th century AD. The use of such entities in ancient India was widespread including virtually every kind of business, political and municipal activity.[1]
The sreni was a separate legal entity which had the ability to hold property separately from its owners, construct its own rules for governing the behavior of its members, and for it to contract, sue and be sued in its own name.[2] Some ancient sources have rules for lawsuits between two or more sreni and some sources make reference to a government official (Bhandagarika) who worked as an arbitrator for disputes amongst sreni from at least the 6th century BC onwards.[3] There were between 18 to 150 sreni at various times in ancient India covering both trading and craft activities. This level of specialization of occupations is indicative of a developed economy in which the sreni played a critical role. Some sreni could have over 1000 members as there were apparently no upper limits on the number of members.[1]
The sreni had a considerable degree of centralized management. The headman of the sreni represented the interests of the sreni in the king’s court and in many official business matters. The headman could also bind the sreni in contracts, set the conditions of work within the sreni, often received a higher salary, and was the administrative authority within the sreni.[1] The headman was often selected via an election by the members of the sreni, who could also be removed from power by the general assembly.[3] The headman often ran the enterprise with two to five executive officers, who were also elected by the assembly.[1]
[edit] Coinage
Punch marked Silver Ingots, in circulation around 5th century BC and the first metallic coins were minted around 6th century BC by the Mahajanapadas of the Gangetic plains were the earliest traces of coinage in India[citation needed]. While India's many kingdoms and rulers issued coins, barter was still widely prevalent[citation needed]. Villages paid a portion of their agricultural produce as revenue while its craftsmen received a stipend out of the crops at harvest time for their services[citation needed]. Each village, as an economic unit, was mostly self-sufficient[citation needed].
[edit] Maurya Empire
During the Maurya Empire (c. 321-185 BC), there were a number of important changes and developments to the Indian economy. It was the first time most of India was unified under one ruler. With an empire in place, the trade routes throughout India became more secure thereby reducing the risk associated with the transportation of goods[citation needed]. The empire spent considerable resources building roads and maintaining them throughout India. The improved infrastructure combined with increased security, greater uniformity in measurements, and increasing usage of coins as currency enhanced trade. During this time, the Arthasastra ("science of state") was written by the Chanakya, an adviser to Chandragupta Maurya[citation needed]. The Arthasastra is one of the most important ancient texts on economics, politics and administration. It was a treatise on how to maintain and expand power, obtain material gain, and administer an empire. It covers both theory and implementation and contains many clear and detailed rules regarding the governing of an empire.[1]
The economic situation in the Maurya Empire is comparable to the Roman Empire several centuries later, which both had extensive trade connections and both had organizations similar to corporations[citation needed]. While Rome had organizational entities which were largely used for public state-driven projects, Maurya India had numerous private commercial entities which existed purely for private commerce. This was due to the Mauryas having to contend with pre-existing sreni hence they were more concerned about keeping the support of these pre-existing private commercial entities[citation needed]. The Romans did not have such pre-existing entities to contend with; hence, they were able to prevent such entities from developing.[1]
[edit] Exports
Surplus of Indian manufactures, like the muslin of Dacca, calicos of Bengal, shawls of Kashmir, steel and iron works, silk, and other textiles and handicrafts, agricultural products like pepper, cinnamon, opium and indigo were exported to Europe, Middle East and South East Asia in return for gold and silver[citation needed].
[edit] GDP estimates
According to economic historian Angus Maddison in his book The World Economy: A Millennial Perspective, India had the world's largest economy in the 1st century and 11th century, with a 32.9% share of world GDP in the 1st century and 28.9% in 1000 CE. Maddison's estimates have been criticized and admired by the academic communtity, and media, as based on what some might characterize as controversial assumptions.[4] However, Economist and Journalist Evan Davis has praised Maddison's research by citing it as a "fantastic publication" and that "One shouldn't read the book in the belief the statistics are accurate to 12 decimal places."[5]
[edit] Mughal Empire
[edit] 1525 - 1550
During this period, India was the second largest economy in the world. The gross domestic product of India in 1550 was estimated at about 40 per cent that of China.
[edit] 1550 - 1575
During this period, India was the second largest economy in the world. The gross domestic product of India in 1575 was estimated at about 50 per cent that of China.
[edit] 1575 - 1600
An estimate of India's pre-colonial economy puts the annual revenue of Emperor Akbar's treasury in 1600 at £17.5 million, in contrast to the entire treasury of Great Britain in 1800, which totalled £16 million. The gross domestic product of India in 1600 was estimated at about 60 per cent that of China.
[edit] 1600 - 1625
During this period, India was the second largest economy in the world. The gross domestic product of India in 1625 was estimated at about 70 per cent that of China.
[edit] 1625 - 1650
During this period, India was the second largest economy in the world. The gross domestic product of India in 1650 was estimated at about 80 per cent that of China. Emperor Shah Jahan's treasury reported annual revenues exceeding £25 million by 1650.
[edit] 1650 - 1675
During this period, India was the second largest economy in the world. The gross domestic product of India in 1675 was estimated at about 90 per cent that of China.
[edit] 1675 - 1700
During this period, the Mughal empire expanded to almost 1,000 million acres (or 90 per cent of south Asia) and a uniform customs and tax administration system was enforced. Annual revenue reported by the Emperor Aurangzeb's exchequer exceeded £100 million in 1700 (twice that of Europe then). Thus, India emerged as the world's largest economy followed by China and France.
[edit] 1700 - 1725
China was the world's largest economy followed by India and France. Collapse of the central authority of the Mughal Empire and the resultant chaos triggered India's long but slow decline on the world stage. The gross domestic product of India in 1725 was estimated at about 90 per cent that of China.
[edit] Nawabs, Marathas & Nizams
[edit] 1725 - 1750
During this period, Mughals were replaced by the Nawabs in north India, the Marathas in central India and the Nizams in south India. However, the Mughal tax administration system was left largely intact. China was the world's largest economy followed by India and France. The gross domestic product of India in 1750 was estimated at about 80 per cent that of China.
[edit] 1750 - 1775
During this period, about two-thirds of the civil service in India was still dominated by Muslim officers. During this period, the Maratha empire expanded to almost 250 million acres (or 34 per cent of Indian landscape) while the Nizam's dominion expanded to almost 125 million acres (or 17 per cent of Indian landscape). China was the world's largest economy followed by India and France. The gross domestic product of India in 1775 was estimated at about 70 per cent that of China.
[edit] British East India Company Rule
The British colonial rule created an institutional environment that did stabilize the law and order situation to a large extent. The British foreign policies however stifled the trade with rest of the world. They created a well developed system of railways, telegraphs and a modern legal system. The infrastructure the British created was mainly geared towards the exploitation of resources of India. By the end of the colonial rule India inherited an economy that was one of the poorest in the world and totally stagnant, with industrial development stalled, agriculture unable to feed a rapidly accelerating population. They were subject to frequent famines, had one of the world's lowest life expectancies, suffered from pervasive malnutrition and were largely illiterate.
- GDP estimates
An estimate by Angus Maddison, formerly of Groningen University, reveals that India's share of the world income went from 24.4% in 1700, comparable to Europe's share of 23.3%, to a low of 3.8% in 1952; however, these statistics too are based on assumptions that have been criticized.[4] While Indian leaders during the Independence struggle and left-nationalist economic historians have blamed the colonial rule for the dismal state of India's economy, a broader macroeconomic view of India during this period reveals that there were segments of both growth and decline, resulting from changes brought about by colonialism and a world that was moving towards industrialization and economic integration.
| Period | Price of Silver (in pence per Troy ounce) | Rupee exchange rate (in pence) |
|---|---|---|
| 1871-1872 | 60½ | 23 ⅛ |
| 1875-1876 | 56¾ | 21⅝ |
| 1879-1880 | 51¼ | 20 |
| 1883-1884 | 50½ | 19½ |
| 1887-1888 | 44⅝ | 18⅞ |
| 1890-1891 | 47 11/16 | 18⅛ |
| 1891-1892 | 45 | 16¾ |
| 1892-1893 | 39 | 15 |
| Source: B.E. Dadachanji. History of Indian Currency and Exchange, 3rd enlarged ed.
(Bombay: D.B. Taraporevala Sons & Co, 1934), p.15. |
||
- The fall of the Rupee
- See also: The crisis of silver currency and bank notes (1750–1870)
After its victory in the Franco-Prussian War (1870-71), Germany extracted a huge indemnity from France of £200,000,000, and then moved to join Britain on a gold standard for currency[citation needed]. France, the U.S. and other industrializing countries followed Germany in adopting a gold standard throughout the 1870s. At the same time, other countries, such as Japan, which did not have the necessary access to gold or those, such as India, which were subject to imperial policies that determined that they did not move to a gold standard, remained mostly on a silver standard. A huge divide between silver-based and gold-based economies resulted. The worst affected were economies with a silver standard that traded mainly with economies with a gold standard. With discovery of more and more silver reserves, those currencies based on gold continued to rise in value and those based on silver were declining due to demonetization of silver. For India which carried out most of its trade with gold based countries, especially Britain, the impact of this shift was profound. As the price of silver continued to fall, so too did the exchange value of the rupee, when measured against sterling.
[edit] 1775 - 1800
During this period, the East India Company began tax administration reforms in a fast expanding empire spread over 250 million acres (or 35 per cent of Indian domain). Indirect rule was also established on protectorates and buffer states. China was the world's largest economy followed by India and France. The gross domestic product of India in 1800 was estimated at about 60 per cent that of China.
The Company treasury reported annual revenue of £111 million in circa 1800 thus registering a average annual growth of merely 0.1 per cent throughout the turbulent 18th century. Almost all of the Indian land revenues were diverted by the Company to help the British Crown defend herself in the Napoleonic Wars.
[edit] 1800 - 1825
China was the world's largest economy followed by India and France. The gross domestic product of India in 1825 was estimated at about 50 per cent that of China. British cotton exports reach 3 per cent of the Indian market by 1825.(pdf)
[edit] 1825 - 1850
China was the world's largest economy followed by the UK and India. Industrial revolution in the UK catapulted the nation to the top league of Europe for the first time ever. During this period, British foreign and economic policies began treating India as a unequal partner for the first time ever. English replaced Persian as the official language of India. The gross domestic product of India in 1850 was estimated at about 40 per cent that of China. British cotton exports reach 30 per cent of the Indian market by 1850.(pdf)
[edit] British Crown Rule
[edit] 1850 - 1875
The formal dissolution of Mughal empire heralded a change in British treatment of Indian subjects. Massive railway projects were begun in earnest and government jobs and guaranteed pensions attracted a large number of upper caste Hindus into the civil service for the first time ever. China was the world's largest economy followed by the USA, UK and India. The gross domestic product of India in 1875 was estimated at about 30 per cent that of China (or 60 per cent that of the USA). British cotton exports reach 55 per cent of the Indian market by 1875.(pdf)
[edit] 1875 - 1900
USA was the world's largest economy followed by China, UK, Germany and India. Collapse of the central authority of the Qing Dynasty and the resultant chaos triggered China's short but rapid decline on the world stage. The gross domestic product of India in 1900 was estimated at about 20 per cent that of the USA.
The Crown treasury reported annual revenue of £122 million in circa 1900 thus registering a average annual growth of merely 0.1 per cent throughout the turbulent 19th century.
[edit] 1900 - 1925
USA was the world's largest economy followed by the UK, China, France, Germany, India and the USSR. The gross domestic product of India in 1925 was estimated at about 10 per cent that of the USA.
Zoroastrian business conglomerates like Tata and Godrej begin to dominate textile, mining and durable goods industries.
The Crown treasury reported annual revenue of £125 million in 1925 thus registering a average annual growth of merely 0.1 per cent during the turbulent first quarter of 20th century.
[edit] 1925 - 1950
USA was the world's largest economy followed by the USSR, UK, China, France, Germany and India. The gross domestic product of India in 1950 was estimated at about 7 per cent that of the USA.
The newly independent but weak Union government's treasury reported annual revenue of £334 million in 1950 thus registering a average annual growth of almost 4 per cent during the second quarter of 20th century. In contrast, Nizam Asaf Jah VII of south India was widely reported to have amassed a fortune of almost £668 million then. [6]
About one-sixth of the national population were urban by 1950.[7]
[edit] Nehru Dynasty
[edit] 1950 - 1975
- Socialist Reforms
USA was the world's largest economy followed by the USSR, Japan, Germany and China. The gross domestic product of India in 1975 was estimated at about 5 per cent that of the USA..
Before independence a large share of tax revenue was generated by the land tax, which was in effect a lump sum tax on land. Since then land taxes have steadily declined as a share of revenues and completely replaced by sales taxes. [1]
Moreover, the structural economic problems inherited at independence were exacerbated by the costs associated with the partition of British India, which had resulted in about 2 to 4 million refugees fleeing past each other across the new borders between India and Pakistan. The settlement of refugees was a considerable financial strain. Partition also divided India into complementary economic zones. Under the British, jute and cotton were grown in the eastern part of Bengal, the area that became East Pakistan (after 1971, Bangladesh), but processing took place mostly in the western part of Bengal, which became the Indian state of West Bengal in 1947. As a result, after independence India had to employ land previously used for food production to cultivate cotton and jute for its mills.
India's leaders -- especially the first prime minister, Jawaharlal Nehru, who introduced the five-year plans -- agreed that strong economic growth and measures to increase incomes and consumption among the poorest groups were necessary goals for the new nation. Giving utmost importance to the economy, Nehru appointed R. K. Shanmukham Chetty, a person who did not participate in the mainstream Indian Independence Movement as the finance minister, since he believed that more than ideology, having the right person in the right job was important.
Government was assigned an important role in the process of alleviating poverty, and since 1951 a series of plans had guided the country's economic development. Although there was considerable growth in the 1950s, the long-term rates of real growth were less positive than India's politicians desired and much less than those of many other Asian countries.
Nehru's industrial policies were intended to encourage the growth of diverse manufacturing and heavy industries, yet because of state planning, controls and regulations the result was impairment of productivity, quality and profitability. The Indian economy lumbered along with an anemic rate of growth, and chronic unemployment amidst entrenched poverty continued to plague the population.
Toward the end of Nehru's term as prime minister, India would continue to face serious food shortages despite hoped for progress and increases in agricultural production. There was mass starvation in states like Bihar due to socialist controls on the economy. Farmers as well as industrialists were ham-strung with controls (License Raj) on their freedom to run their respective businesses. If it was not for the magnanimous and humanitarian help from the US (PL 480) the famines would have brought about starvation and death on an unimaginable scale.
Despite such atrocious conditions in the country Nehru's popularity remained unaffected because of the larger-than-life image and the personality cult that was promoted by the state controlled mass media. In a way, this was a testament to the stoic and unshakeable Indian character and the people's miraculous ability to endure and take into stride unimaginable difficulties.
Since 1950, India ran into trade deficits that increased in magnitude in the 1960s. The Government of India had a budget deficit problem and therefore could not borrow money from abroad or from the private sector, which itself had a negative savings rate. As a result, the government issued bonds to the RBI, which increased the money supply, leading to inflation. In 1966, foreign aid, which was hitherto a key factor in preventing devaluation of the rupee was finally cut off and India was told it had to liberalise its restrictions on trade before foreign aid would again materialise. The response was the politically unpopular step of devaluation accompanied by liberalisation. The Indo-Pakistani War of 1965 led the US and other countries friendly towards Pakistan to withdraw foreign aid to India, which further necessitated devaluation. Defence spending in 1965/1966 was 24.06% of total expenditure, the highest in the period from 1965 to 1989. This, accompanied by the drought of 1965/1966, led to a severe devaluation of the rupee.
Current GDP per capita grew 33% in the Sixties reaching a peak growth of 142% in the Seventies, decelerating sharply back to 41% in the Eighties and 20% in the Nineties.
From FY 1951 to FY 1979, the economy grew at an average rate of about 3.1 percent a year in constant prices, or at an annual rate of 1.0 percent per capita (see table 16, Appendix). During this period, industry grew at an average rate of 4.5 percent a year, compared with an annual average of 3.0 percent for agriculture. Many factors contributed to the slowdown of the economy after the mid-1960s, the main one was the socialist policies pursued by Nehru and his cabinet. They managed to tamp down on the natural business acumen and abilities of the population, yet some economists differed over the relative importance of those factors.
Structural deficiencies, such as the need for institutional changes in agriculture and the inefficiency of much of the centrally directed industrial sector, also contributed to economic stagnation. Some other excuses that were generally offered were - War with China in 1962 and with Pakistan in 1965 and 1971; a flood of refugees from East Pakistan in 1971; droughts in 1965, 1966, 1971, and 1972; currency devaluation in 1966; and the first world oil crisis, in 1973-1974, all jolted the economy.
This is a chart of trend of gross domestic product of India at market prices estimated by Ministry of Statistics and Programme Implementation with figures in millions of Indian Rupees. See also the IMF database.
| Year | Gross Domestic Product | US Dollar Exchange in (Rs.) |
|---|---|---|
| 1950 | 99,340 | 4.79 |
| 1955 | 108,730 | 4.79 |
| 1960 | 171,670 | 4.77 |
| 1965 | 276,680 | 4.78 |
| 1970 | 456,770 | 7.56 |
| 1975 | 832,690 | 8.39 |
^ Lawrence H. Officer, "Exchange rate between the United States dollar and forty other countries, 1913 -1999." Economic History Services, EH.Net, 2002. URL: http://eh.net/hmit/exchangerates/
The Union government treasury reported annual revenue of £5-6 billion in 1975 thus registering a average annual growth of almost 12 per cent during the third quarter of 20th century. Nevertheless, prime minister Indira proclaimed emergency and suspended the Constitution in 1975.
About one-fifth of the national population were urban by 1975.[8]
[edit] 1975 - 2000
- Privatisation Reforms
USA was the world's largest economy followed by Japan, Germany and China. The gross domestic product of India in 2000 was estimated at about 4 per cent that of the USA. { Please note: The author is going back and forth between real GDP (exchange) vs GDP by PPP. China was not fourth largest country by GDP(exchange). If that statement is based on GDP(by PPP)then India was fifth largest. If the author is quoting India is 4% of US GDP in 2000, then Chinese GDP was 8% of US GDP by exchange rate}
Back-to-back assassinations of the prime ministers Indira Gandhi and her son Rajiv Gandhi crushed international investor confidence on the economy that was eventually pushed to the brink by the early 1990s.
- See Also: Economic Reforms under Rao
As of 1991, India still had a fixed exchange rate system, where the rupee was pegged to the value of a basket of currencies of major trading partners. India started having balance of payments problems since 1985, and by the end of 1990, it was in a serious economic crisis. The government was close to default, its central bank had refused new credit and foreign exchange reserves had reduced to the point that India could barely finance three weeks’ worth of imports.
The Government of India headed by Narasimha Rao decided to usher in several reforms that are collectively termed as liberalisation in the Indian media with Manmohan Singh whom he appointed as a special economical advisor. Plague returned to India in 1994.[3]
For a short educational video of the "economic history of India".
It is estimated that only 2 per cent of the population were taxpayers as of 2000. Mumbai overtook Calcutta as the largest city in the country.
This is a chart of trend of gross domestic product and foreign trade of India at market prices estimated by Ministry of Statistics and Programme Implementation with figures in millions of Indian Rupees. See also the IMF database.
| Year | Gross Domestic Product | Exports | Imports | US Dollar Exchange in (Rs.) | Inflation Index (2000=100) |
|---|---|---|---|---|---|
| 1980 | 1,380,334 | 90,290 | 135,960 | 7.86 | 18 |
| 1985 | 2,729,350 | 149,510 | 217,540 | 12.36 | 28 |
| 1990 | 5,542,706 | 406,350 | 486,980 | 17.50 | 42 |
| 1995 | 11,571,882 | 1,307,330 | 1,449,530 | 32.42 | 69 |
| 2000 | 20,791,898 | 2,781,260 | 2,975,230 | 44.94 | 100 |
^ Lawrence H. Officer, "Exchange rate between the United States dollar and forty other countries, 1913 -1999." Economic History Services, EH.Net, 2002. URL: http://eh.net/hmit/exchangerates/
During the 1990s, at least 100,000 insolvent farmers committed suicide.[5] The Union government treasury reported annual revenue of almost £19-20 billion in circa 2000 thus registering a average annual growth of merely 5 per cent during the last quarter of 20th century.
About one-fourth of the national population were urban by 2000.[9]
[edit] 2000 - Present
- Rise of Oligarchy
The gross domestic product of India in 2007 was estimated at about 8 per cent that of the USA.
National Democratic Front led by BJP, was in helm of economic affairs from 1998-2004. During this period there were two finance ministers, viz., Yashwant Sinha (1998-2003) and Jaswant Singh (2003-2004). The main economic achievement of the government was the universal license in telecom field, which allows CDMA license holders to provide GSM services and vice versa. NDA started off the Golden Quadrilateral road network connecting main metros of Delhi, Chennai, Mumbai and Kolkata. The project, still under construction, was one of the most ambitious infrastructure projects of independent India. Simultaneously, North-South and East-West highway projects were planned and construction was started.
Education for all is still an unrealised dream in India. This was made a fundamental right by amending the constitution of India and huge amount of money was pumped into the project under the name of Sarva Shiksha Abhiyan. This project met with limited success.
Currently, the economic activity in India has taken on a dynamic character which is at once, curtailed by creaky infrastructure , cumbersome justice system, dilapidated roads, severe shortages of power and electricity yet at the same time accelarated by the sheer enthusiasm and ambition of the industrialists and the populace. The upward economic cycle in India is expected in short time to effectively address the short comings and bottlenecks of the infrastructure. The fast changing, seemingly chaotic and unsettled situation is much more hopeful and reassuring than the socialist morass that was the Nehru and Indira Gandhi legacy.
This is a chart of trend of gross domestic product and foreign trade of India at market prices estimated by Ministry of Statistics and Programme Implementation with figures in millions of Indian Rupees. See also the IMF database.
| Year | Gross Domestic Product | Exports | Imports | US Dollar Exchange in (Rs.) | Inflation Index (2000=100) |
|---|---|---|---|---|---|
| 2000 | 20,791,898 | 2,781,260 | 2,975,230 | 44.94 | 100 |
| 2005 | 34,195,278 | 44.09 | 121 |
^ Lawrence H. Officer, "Exchange rate between the United States dollar and forty other countries, 1913 -1999." Economic History Services, EH.Net, 2002. URL: http://eh.net/hmit/exchangerates/
For purchasing power parity comparisons, the US Dollar is exchanged at 9.46 Rupees only.
Despite steady growth and continuous reforms since the Nineties, Indian economy is still mired in bureaucratic hurdles from coast to coast. This was confirmed by a World Bank report published in late 2006 ranking Pakistan (at 74th) well ahead of India (at 134th) based on ease of doing business [7]
Haphazard industrial schemes and liberalisation reforms by different governments created a massive concentration of wealth in the hands of a few select oligarchs particularly in the southern and western states of India as well as a new underclass of 50 million internally displaced persons by the end of 20th century.[8] These oligarchs control the media and the mineral resources and lobby vigorously for personal aggrandisement. In 2006, Forbes reported that India was home to more billionaires than any other nation in Asia except Russia.
Plague returned to India in 2002[9] and 2007[10]. An overwhelming 836 million people in India live on a per capita consumption of less than Rs.20 per day ($0.50 per day), according to the findings of the Arjun Sengupta's Report On The Conditions Of Work And Promotion Of Livelihood In The Unorganised Sector.[11]
The Union government treasury reported annual revenue of £51-52 billion in 2005 thus registering a average annual growth of almost 22 per cent since 2000. India imported about 85 per cent of oil and 15 per cent of gas consumption by 2005.
It is widely believed that, as of 2006, at least 231 of the country’s 608 districts were afflicted, at differing intensities, by various insurgent and terrorist movements. [10]
[edit] See also
- Timeline of the economy of India
- List of countries by past GDP (PPP)
- List of countries by past GDP (nominal)
- Rajnarayan Chandavarkar historian
[edit] References
- ^ a b c d e f Khanna (2005).
- ^ See Laws of Manu VIII and Chanakya's Arthashastra (3.1.15).
- ^ a b Jataka IV.
- ^ a b Haig, Bryan. 2005. "Review of 'The World Economy: Historical Statistics,' by Angus Maddison" Economic Record, volume 81.
- ^ China's magnificent historic past
- ^ His Fortune on TIME
- ^ One-sixth of Indians were urban by 1950
- ^ One-fifth of Indians were urban by 1975
- ^ One-fourth of Indians were urban by 2000
- ^ Almost 40% of Indian landscape is theatre of independence struggles
[edit] Bibliography
- Articles
- Dr. Nupam P. Mahajan, (1999) India's First Coinage. Retrieved Feb. 24, 2005.
- Books
- This article contains material from the Library of Congress Country Studies, which are United States government publications in the public domain.
- Adam Smith, The Wealth of Nations.
- Jawaharlal Nehru, The Discovery of India
- Max Weber, The Religion of India: The Sociology of Hinduism and Buddhism
- Micklethwait, John & Wooldridge, Adrian (2003). The Company: a short history of a revolutionary idea. Modern library chronicles. ISBN 0-679-64249-8.
- Sankaran, S (1984). Indian Economy: Problems, Policies and Development (7th ed. (1994)). Margham Publications.
- Datt, Ruddar & Sundharam, K.P.M. (1965). Indian Economy (51st Revised ed. (2005)). S.Chand. ISBN 81-219-0298-3.
- Limca Book of Records (1993). Bisleri Beverages Limited. ISBN 81-900115-6-1.
- Papers
- Khanna, Vikramaditya S. (2005). The Economic History of the Corporate Form in Ancient India. University of Michigan.
- Pearce, H. Thomas (Spring 2003). Weber's study of the Hindu ethic and the caste system.
- News
- Manmohan Singh's address at the Oxford in July 2005. Retrieved on December 10, 2005.
- http://livesharemarkets.com/2008/04/04/inflation-at-3-years-hightouches-7-markets-down-by-490-points/
[edit] Bibliography
- G. Balachandran, ed. India and the World Economy, 1850-1950 Oxford University Press, 2005. ISBN 0-19-567234-8.
- Chaudhuri, K. N.Trade and Civilisation in the Indian Ocean: An Economic History from the Rise of Islam to 1750 (1985) fdbfklhfhlkj
- Ludden, David, ed. New Cambridge History of India: An Agrarian History of South Asia (1999).
- Habib, Irfan. Agrarian System of Mughal India (1963, revised edition 1999).
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